Financial Crisis

A financial crisis is “an economic recession or depression caused by a lack of necessary liquidity in financial institutions. A financial crisis may be caused by a natural disaster, negative economic news or some other events.”(InvestorWords.com, 2009) Financial crisis usually decrease business activity because people do not have enough financial resources. The reason why I chose this topic is because it is a daily theme in all of the European tabloids. We read every day’s news about bankrupt companies which have big trouble with deficit of work or other companies did not pay them for work. The present financial crisis started in the United States “on black Thursday 26th July in 2007” (Robert, D. & McHugh, Jr., 2007) and turned into a global economic recession in all countries OECD. The worldwide recession, the first since the Second World War, dropped to a “reduction of world gross domestic product by four per cent in 2009”. (Munster, R., 2011)

Graph no.1: This graph refers to the top nine biggest consumers in World (data available at: http://www.wto.org/english/news_e/pres10_e/pr598_e.htm)

Financial crisis formatted by transnational corporation and mass media who we are constantly pushed and persuaded from advertisements to lend money, take loans and live luxurious lifestyles despite not having the financial resources. People are taking loans for absolutely stupid thinks like TV, mobile phones and furniture. Result for them is, they have too many loans and they are not able to pay their mortgage and became insolvent for banks. And also we can identify specific people who are responsible for the financial crisis. ”There are Phil Gram- chairman of the Senate Banking Committee from 1995-2000, Alan Greenspan- The Federal Reserve chairman, Chris Cox - SEC (Security and Exchange Commission) chief, Hank Paulson- Treasury Secretary, Joe Cassano- Founding Member of AIG, Ian Mccarthy- Chairman of Beazer Homes, Dick Fuld- concocted...

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...Spanish financialcrisis
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Question: Will the global financialcrisis (GFC) result in a higher level of free trade around the globe, or a reversion to protectionism?
Table of Content
1.0 Introduction …………………………………………………………………………... | 3 |
2.0 Discussion | |
2.1 Global FinancialCrisis as it happened……………………………………………….. | 4 |
2.2 Current Situation of global financialcrisis…………………………………………… | 6 |
2.3 Free trade, comparative advantage and impact of the crisis on free trade…………… | 8 |
2.4 Protectionism…………………………………………………………………………. | 9 |
2.5 Emerging Protectionism after financialcrisis………………………………………… | 9 |
2.6 How big players play with protectionism…………………………………………….. | 11 |
2.7 Reversion to Protectionism on WTO’s and G20’s Perspectives……………………… | 12 |
3.0 Conclusion …………………………………………………………………………… | 12 |
4.0 Referencing …………………………………………………………………………... | 13 |
1.0 Introduction
According to the economists, world is currently facing to the worst ever global financialcrisis since 1930 world’s great depression. Currently this financialcrisis is affecting most of the countries all over the world, not only developed countries but also developing countries as well as least developed countries facing financial difficulties. The Global Financial...

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Running Head: ECONOMIC CRISIS: EFFECTS ON THE ECONOMY 3
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...Introduction:
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Lack of predicting the nature of the economy and the prospective results of the economic policies leading to decline in the economic profits eventually led to the financialcrisis of 2007/2008.
The FinancialCrisis of 2007/2008:
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...The Philippines amidst the Asian FinancialCrisis
And the Global financialCrisis
I. Introduction
Since before, there had been many financialcrisis happened, for instance the Great depression of the 1930’s, the U.S recession of 2001 and other financialcrisis. All of the country in the world has felt how severely devastating a financialcrisis is, on how much problem does it give to an economy, even though the most powerful economies that produce about a quarter of the world output like the America have experienced a financialcrisis. Like here in the Philippines, it was affected by the 1997 Asian financialcrisis and the latest was the global financialcrisis. During those times the Philippines undergo several problems that any country would incur during a financialcrisis, similar to depreciating of currency, decreasing GDP, rising of unemployment rate and other macroeconomic indicators. (Khandkler, 2002, p 224) “Concludes that the effect of the crisis, may be seen in rising unemployment and underemployment and in the deterioration of quality of jobs.” This paper will compare on the 1997 Asian Financialcrisis and the recently crisis of 2007 global...